We work with individual investors just like you every day. And over the years, experience has taught us that time in the market – not timing the market – is a solid strategy for success. Dollar cost averaging can help you build your portfolio over time and potentially smooth out the bumps along the way.
So how does it work? With dollar cost averaging, you steadily build your portfolio by investing a fixed dollar amount at regular intervals. By investing on a set schedule, you develop discipline that can help you be a better long-term investor. Plus, investing systematically lets you buy more shares when the price is low and fewer when the price is high. Think of it this way: It helps "average out" your share price over time.
Systematic investing does not guarantee a profit or protect against loss. Investors should consider their willingness to keep investing when share prices are declining.